Drivers wonder if they should go electric as the war spikes gas prices
[March 12, 2026] By
ALEXA ST. JOHN and TAMMY WEBBER
Oil and gasoline prices are rising as the war in Iran intensifies and
other global conflicts affect supply. That means pain at the pump for
drivers filling up with gas. But electric vehicle drivers are largely
unaffected by spikes in oil prices. Electricity prices — even as
different grids have different power mixes — are more regulated. Experts
say prolonged high gas prices may drive some EV interest and sales.
Car-buying resource Edmunds says it has seen an uptick in people
researching EVs and hybrids. But the experts also say just how far that
will go is unclear. And in the U.S., significant incentives to buy EVs
have gone away.
Story
When Kevin Ketels bought an electric 2026 Chevrolet Blazer last year, he
wasn't thinking about the cost of gas. He just thought EVs were better
and “wanted to be part of the future.” Now that the Iran war is spiking
prices at the pump, the Detroit man is happy he is no longer filling up
his 11-year-old gas-powered SUV.
“Electricity can go up, but it won’t go up nearly as much as gas will
and it won’t go up nearly as fast, either,” said Ketels, 55, an
assistant professor of global supply chain management at Wayne State
University.
Experts say prolonged high gas prices may drive some EV interest and
sales, especially if drivers assume their electricity prices won't be
affected by the crises.
But many factors influence consumer EV purchases — and electricity
rates.
Are EV owners truly insulated from price hikes?
Drivers of gas-powered vehicles are much more vulnerable to fluctuating
prices that result from global conflict than those who charge their
cars. The national average for a gallon of regular gas this week was
$3.57, up from $2.94 a month ago, according to AAA.
Meanwhile, “residential electricity prices are regulated and are much
less volatile than gasoline prices,” said University of California,
Davis economics professor Erich Muehlegger. “As a result, EV owners are
largely unaffected by oil price shocks.”
But experts say electricity prices have been increasing nationally for a
variety of reasons, including surging power demand from new data
centers.
“This is an inflationary event,” Holt Edwards, principal in Bracewell’s
Policy Resolution Group, said of the war. “Is this the driver in
electricity prices? I think probably not. But it’s certainly a
contributing factor.”
To what extent oil and gas conflicts could translate to the electricity
sector is yet to be seen.
What about how different grids are powered?
When it comes to the electricity an EV owner is tapping, much of the
cost depends on which sources of electricity are in a local grid's power
mix, experts say.
Because regulators set residential electricity prices annually, most
households are sheltered from month-to-month changes in natural gas
costs. Though experts say higher natural gas prices can increase the
cost of generating electricity, natural gas prices haven’t risen as
quickly or as much as oil prices have recently.
Those are just two of many energy sources — including coal, nuclear and
renewables — that power the electric grid.
“The energy component varies depending on the energy you’re using and
the price of the energy that you’re using to generate electricity,” said
Pierpaolo Cazzola, an energy expert at Columbia University’s Center on
Global Energy Policy. “What happens is that in the U.S., the variation
of the price of the energy component is smaller than it is elsewhere.”
The experts said persistent war could affect electricity bills in the
future. And that is all the more reason for countries to transition to
clean power, they said.
“Clean power and electrification combined is what provides the most
security,” said Euan Graham, an analyst at energy think tank Ember.
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Electric vehicles charge at a station Wednesday, March 11, 2026, in
Lincolnwood, Ill. (AP Photo/Erin Hooley)
 Michael B. Klein, a 56-year-old
software developer in Evanston, Illinois, has driven EVs for the
past eight years to save on fuel costs and because of environmental
concerns.
Every time electrical grid efficiency improves — especially as
renewables are added — “I get that benefit no matter what,” said
Klein, who drives a Chevy Bolt. “They can improve the efficiency of
gas engines, but you have to get a new car in order to reap the
benefit of that.”
So will EV demand rise?
Several experts say high gasoline prices are a strong driver of EV
sales, particularly if high prices persist. Drivers also consider
more gasoline-efficient hybrid vehicles during these times.
Car-shopping resource Edmunds analyzed consumer shopping data for
the week starting March 2, after the Iran war had begun. They found
that interest in hybrids, plug-in hybrids and battery EVs accounted
for 22.4% of all vehicle research activity on their site that week,
up from 20.7% the previous week. Analysts also looked back at the
last major nationwide fuel price surges in 2022, and they saw that
consideration of electrified vehicles consideration rose sharply
then, too.
But whether this means more EV purchases depends on whether buyers
expect to save not just now but in the future, experts say.
Adding to the complexity: A sudden increase in EV demand could drive
up prices, Graham said.
“I think the real step change would be in whether this causes
governments to shift tax, tariff policies around EVs,” Graham said.
Doing so would help reduce fossil fuel dependence, he said.
Does driving electric really save money?
Pretty much.
People who buy EVs have a “really substantial” gas savings over the
life of their vehicles even without government tax credits, said
Peter Zalzal, an attorney with Environmental Defense Fund.
“We’re talking about thousands and thousands of dollars” in savings,
Zalzal said. “And as gas prices increase, those savings are only
greater. Fuel costs are a big piece of overall vehicle costs, and
increases in fuel prices have significant impacts on people.”
However, the upfront cost of a new EV is still more than that of a
gasoline-powered vehicle; new EVs sold for an average of $55,300
last month, while new vehicles overall sold for an average $49,353,
according to auto-buying resource Kelley Blue Book. Some experts
also expressed national security concerns with EVs because China
dominates significant parts of the EV supply chain.
Ketels, the EV owner and professor, said he believes EVs and
renewable energy should be a strategic priority for individuals and
the U.S. because they could be produced domestically “and we don’t
have those fluctuations and those worries.”
But because the federal government has withdrawn many incentives for
both, “it puts us at a disadvantage globally,” Ketels said. “I think
it’s been a terrible mistake to withdraw these incentives and to
attack the sustainable energy industry,” and the war “is just making
it that much more obvious.”
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